Exam 3: Where Prices Come From: The Interaction of Demand and Supply

In July,market analysts predict that the price of gold will rise in August.What happens in the gold market in July,holding everything else constant?

Last year,the Pottery Palace supplied 8,000 ceramic pots at $40 each.This year,the company supplied the same quantity of ceramic pots at $55 each.Based on this evidence,The Pottery Palace has experienced

Figure 3-5 -Refer to Figure 3-5.At a price of $5,the quantity sold

In 2004,hurricanes damaged a large portion of Florida's orange crop.As a result of this,many orange growers were not able to supply fruit to the market.If,following the hurricane,the price remained at its pre-hurricane level,we would expect to see

If consumers believe the price of LCD televisions will decrease in the future,this will cause the demand for LCD televisions to increase now.

A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease.Holding everything else constant,how would this affect the market for video game consoles (a complement to LCD televisions)?

Which of the following would shift the supply curve for smartphones to the right?

A ________ demand curve for shampoo would be caused by a change in the price of shampoo.

A decrease in the equilibrium quantity for a product will result

If consumers believe the price of hybrid vehicles will decrease in the future,this will cause the demand for hybrid vehicles to decrease now.

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall.Holding everything else constant,how would this affect the market for wheat (a substitute for corn)?

Assume that smartphones are a normal good,and that the prices of smartphones have fallen in recent years.Over this same period,the price of the components used to produce smartphones has also fallen and consumer incomes have risen.Which of the following best explains the falling prices of smartphones?

Figure 3-1 -Refer to Figure 3-1.A decrease in the expected future price of the product would be represented by a movement from

Figure 3-2 -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from

A firm has an incentive to decrease supply now and increase supply in the future if it expects that

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes,accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions,will result in

Table 3-4 Rest of Cashews Jordy's Amy's Market Market Tea Quantity Quantity Quantity Quantity Price per lb. Demanded Demanded Demanded Demanded (dollars) (lbs.) (lbs.) (lbs.) (lbs.) \ 10 1 1 50 8 2 3 70 6 3 5 95 4 5 9 128 2 8 14 156 -Refer to Table 3-4.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.If the price of cashews rises from $4 to $6,the market quantity demanded would

If the price of gasoline increases,what will be the impact in the market for public transportation?

Assume that potatoes are an inferior good.Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes to decrease?

If the demand for a product increases and the supply of the same product decreases,the equilibrium price will increase.